Oiltek and BioSeaga Partner on $350M Sustainable Aviation Fuel Plant in Sabah, Malaysia to Advance Green Aviation
Singapore-based Oiltek International Limited has partnered with Brunei-based BioSeaga Group to co-develop a cutting-edge Sustainable Aviation Fuel (SAF) production facility in Sabah, Malaysia.
Through a heads of agreement, Oiltek Sdn. Bhd., Oiltek's Malaysian subsidiary, will serve as the exclusive contractor for engineering, procurement, construction, and commissioning (EPCC) services on the project valued at approximately $350 million.
Project Specifications and Capacity
The facility is designed to produce around 300 tons of SAF per day, featuring pre-treatment units, a core production plant, tank farm, logistics infrastructure, and partial blending capabilities.
This initiative leverages Oiltek's extensive 45 years of expertise in vegetable oil processing technologies, adapting them for the renewable fuels sector.
Strategic Impacts and Future Growth
BioSeaga Industries Sdn Bhd, an affiliate of BioSeaga, will benefit from Oiltek's technical support for financial modeling and project planning.
The agreement includes Oiltek's right of first refusal for equity investments, joint ventures, or ownership in the project and its expansions.
This partnership positions Malaysia as a key player in the global SAF supply chain, supporting aviation's decarbonization efforts amid rising demand for low-carbon fuels.
Economically, the facility promises job creation and boosts Sabah's role in regional green energy and sustainable fuel exports.
Historically, Oiltek has delivered EPCC services worldwide in the oils value chain, now pivoting to biofuels for a sustainable future.
BioSeaga's focus on renewable fuels and food security aligns with ASEAN's green transition, fostering cross-border collaborations.
Final project terms will be confirmed in a definitive agreement, accounting for updated costs and designs.
The venture highlights accelerating investments in SAF, critical for meeting international aviation emissions targets by 2050.
